A WEEKLY look at the SLV

One thing Aqumin’s AlphaVision landscape does very well is show broad market relative comparisons of pricing information. I have been keeping an eye on the CBOE’s new Weekly products for a while trying to get a sense of how they trade. And, duh, it is just expiration every week.

Using the Aqumin Option Landscape (patent pending) to see current Mid Volatility between the bid/ask and 2 week Historical Volatility a nice little pattern emerges. Greener series have MidVol higher than the current 2 week historical (that is mostly in the junk calls). Red series means the MidVol is trading below the 2 Week HV. If you look at the Option Landscape for the iShares Silver Trust ETF (SLV) below you see a lot of red centered around the at the money options, especially in the Weeklies.

This means the current Weekly pricing does not expect the SLV to be as volatile next week as it has been over the previous two. The Christmas effect is damping down those silver bells.

(If you want to learn more about 3D visualization of financial data visit www.aqumin.com)

Andrew Giovinazzi

If you want to use this Option Landscape in AV Professional click the 14 Day MidVol Outlook View in the Option View Library.

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